Photo: Government Complex Seoul main building / Seoul Institute, Wikimedia Commons / CC BY 4.0
South Korean crypto investors would get two more years before a planned tax on their gains takes effect, under a government proposal announced Thursday — but it is not final yet.
The Ministry of Finance and Economy said it will push to delay the virtual-asset income tax from January 2027 to January 2029, and to let investors carry forward losses for up to three years so gains and losses can be offset over time, Asia Business Daily reported. The plan still has to go through the National Assembly, with discussions expected this month in the tax subcommittee of the Finance and Economy Planning Committee.
Under the existing law, gains above a 2.5 million won annual allowance would be taxed at 20%, or 22% including local tax. The government cited thin data on overseas transactions, tax-equity concerns and an expected U.S. information-exchange framework arriving in 2029 as reasons for the delay. Detailed standards are due in the first half of 2028. It would be the fourth postponement of the tax, first introduced in a 2020 revision.
For Korean crypto holders, the bottom line: two more years before the tax bites, plus a way to deduct past losses — if lawmakers sign off.
JBizNews Desk | Global
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